![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/11\/Payprop-provincial-2.png\")
<\/a><\/p>\nFive out of the nine provinces saw a reduction in the rental growth rate, while the four provinces showed modest increases, contributing less than a third to the total weighting of the overall growth.<\/p>\n
As a result, the weighted average YoY growth rate decreased from 6.9% to 5.9% between Q2 and Q3, PayProp said.<\/p>\n
“It seems as though every few months a new province steals the show with stellar rental growth rates. Unfortunately, what goes up must come down again, and in Q3 it was Limpopo’s turn to fall from the dizzy heights of Q2, when YoY growth was 11.9%, to a mere 1.1%,” Smuts said.<\/p>\n
On the opposite end of the scale, the Northern Cape clocked YoY growth of 9.3% in Q3, up from a below-average 3.8% a mere six months before.<\/p>\n
“From a buy-to-let investor\u2019s perspective, it makes sense to put these ups and downs into context with the help of cumulative rental growth figures. Landlords who are in it for the long run seek out sustained growth potential over longer periods, to help them distinguish flash-in-the-pan investments from solid gold returns,” PayProp said.<\/p>\n
To illustrate cumulative growth, the group painted a hypothetical example: if rent in all provinces were R1,000 at the same starting point, where would they be now, and which province would show the best rental growth over one year, two years and three years?<\/p>\n
The results are outlined in the graph below:<\/p>\n